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Belize’s Central Bank Issues New Anti-Money Laundering and Counter-Terrorism Financing Guidelines

Belmopan, Belize - The Central Bank of Belize has issued new guidelines aimed at strengthening the country’s efforts to combat money laundering, terrorist financing, and proliferation financing. The guidelines, effective December 2023, set out the minimum standards for financial institutions regulated by the bank to adhere to in order to prevent and detect these illicit activities.

Defining Key Terms

The guidelines define several key terms, including:

  • Close associate of a PEP: an individual who maintains an unusually close relationship with a Politically Exposed Person (PEP) and has the ability to conduct substantial domestic and international financial transactions on their behalf.
  • Competent authority: the Central Bank of Belize or any other regulatory body responsible for enforcing anti-money laundering and counter-terrorism financing requirements.
  • Customer due diligence: verifying the identity of customers, monitoring account activity, and determining whether transactions conform with normal or expected behavior.

Requirements for Financial Institutions

Under the guidelines, financial institutions are required to:

  • Conduct thorough customer due diligence on all customers, including PEPs and their close associates
  • Verify the identity of customers
  • Monitor account activity
  • Determine whether transactions conform with normal or expected behavior
  • Implement measures to prevent money laundering and terrorist financing, such as reporting suspicious transactions and maintaining records of all transactions

Responsibilities of Supervisors

The guidelines also set out the responsibilities of supervisors, including:

  • The Financial Intelligence Unit (FIU), which is responsible for ensuring that financial institutions comply with anti-money laundering and counter-terrorism financing requirements.

Objectives

The new guidelines are aimed at strengthening Belize’s ability to combat money laundering, terrorist financing, and proliferation financing, and bring the country into compliance with international standards.